CFAI 2008 exam problem # 9: Anybody can shed a light on how to approach it? Schwesers formulas are totally different. Thanks in advance
derswap07 Wrote: ------------------------------------------------------- > CFAI 2008 exam problem # 9: > > Anybody can shed a light on how to approach it? > Schwesers formulas are totally different. > > Thanks in advance You mean CFAI 2008 “old” AM exam problem # 9 ? The CFAI 2008 “old” AM exam problem # 9 was about “Execution”.
Sorry, I meant 2007 exam.
I suggest whenever they differ, go with the CFA text…
derswap07 Wrote: ------------------------------------------------------- > Sorry, I meant 2007 exam. I found that there is no weight for each benchmark (Local Index) ! It seems that the assumption is the weight for each benchmark is 0. But is this quite strange ? I am also confused ! Anyone else can clarify ?
Schweser book 5 P. 137 has the following suggestion. Look for data on a benchmark. If no benchmark data given, perform return decomposition. If benchmark data is available, perform attribution analysis. To perform return decomposition, we took manger’s selection of markets as given and broke down portfolio returns. The analysis did not indicate manager’s ability to select superior markets and did not measure manager’s performance vs. benchmark. Manager’s ability to select superior markets are measured in attribution analysis. Hope it helps.
Thanks B_C